Alphabet rises after reporting solid Q2 earnings and plans to increase capex spend to $85 billion

Alphabet’s stock rose slightly after the tech giant posted second-quarter results just above Wall Street’s expectations.

Shares were up a little more than 1% in after-hours trading.

Google’s parent company expects to spend $85 billion on capital expenditures this year, an increase from the $75 billion it said earlier this year.

For the quarter, Alphabet posted $96.4 billion in revenue, up 14% year over year. Analysts were expecting revenue of $93.9 billion.

Diluted earnings per share came in at $2.31, beating analysts’ expectations of $2.18.

Let’s break down the results for Alphabet’s many divisions:

• YouTube’s Q2 ad revenue rose 13% to $9.8 billion.

• Google Cloud revenue for Q2 was $13.6 billion, growing 31% year over year, driven by growth in AI Infrastructure and Generative AI Solutions.

• Google’s Search business brought in $54.2 billion, up 12%.

• Google advertising revenue was $71.3 billion, a 10% increase year over year.

In the earnings release, CEO Sundar Pichai said:

“We had a standout quarter, with robust growth across the company. We are leading at the frontier of AI and shipping at an incredible pace. AI is positively impacting every part of the business, driving strong momentum."